Cyprus cabinet to consider new energy aid, heating oil relief possible
"Cyprus's Finance Minister Makis Keravnos announced that the government is preparing targeted relief measures to counter surging energy and fuel costs, with decisions expected at a September 30 Cabinet meeting. The forthcoming package aims to cushion consumers against escalating living expenses and distribute economic growth equitably, while maintaining fiscal stability amid volatile international markets."
EU Directive 2019/790 Article 15 Attribution • Verified Energy Document
Cyprus's Finance Minister, Makis Keravnos, has announced that the government is preparing new measures to address rising energy prices, with decisions expected at the Cabinet meeting on September 30.
Speaking on ANT1's midday programme with Nikitas Kyriakou, Minister Keravnos affirmed the government's close monitoring of the situation. He indicated that additional measures would be announced once deemed appropriate, noting that a final costing is not yet available as decisions are still pending.
Keravnos hinted at potential relief for heating oil costs, which were cited in the interview as reaching 1.60 euros. He explained that the government is tracking market trends and, due to favorable weather conditions, has not yet needed to intervene but will decide on appropriate action when necessary.
Regarding fuel prices, the minister highlighted that, despite recent increases, Cyprus ranks as the fifth cheapest EU country for petrol, according to available data. He emphasized that prices would be significantly higher without prior government interventions, such as the excise duty cut of 8.33 cents per liter on petrol and diesel, which the Cabinet extended until November 30 on September 10.
Keravnos clarified that European Union regulations prevent VAT on electricity from falling below 5 percent. He dismissed criticisms of "double taxation" concerning VAT applied on top of excise duties, stating that this matter has been repeatedly discussed with the European Commission, with no alternative approach deemed feasible.
He acknowledged that the escalating energy costs are influencing broader market prices and other consumer goods. In response, he pointed to existing measures including electricity subsidies and zero VAT on essential items.
The minister countered opposition criticism, branding it as "unbridled populism." He asserted that, despite international and geopolitical pressures, the Cypriot economy remains in a relatively strong position.
While admitting that "we have not solved the problems," he reiterated that the overarching goal of the government's economic policy is to ensure that the benefits of economic growth are distributed among citizens.